Economic Model Models

Keywords economic model, shareholder s profit, project cashflow, gross revenue, discounted cashflow, opex, capex, technical cost, tax, royalty, oil price, marker crude, capital allowance, discount rate, profitability indicators, net present value, rate of return, screening, ranking, expected monetary value, exploration decision making. 

During process development, a model can be developed as soon as a conceptual flow sheet has been formulated. This model can be updated as more information about the process is obtained. Even at an early stage in the project, the model can be used to assess the preliminary economics of the process and the effect of technological changes on these economics. The model can aid in interpreting pilot-plant data and allows the study of many process alternatives. 

Categories 2 and 3 comprise the model of the process or equipment category I is sometimes called the economic model. 

No single method or algorithm of optimization exists that can be apphed efficiently to all problems. The method chosen for any particular case will depend primarily on (I) the character of the objective function, (2) the nature of the constraints, and (3) the number of independent and dependent variables. Table 8-6 summarizes the six general steps for the analysis and solution of optimization problems (Edgar and Himmelblau, Optimization of Chemical Processes, McGraw-HiU, New York, 1988). You do not have to follow the cited order exac tly, but vou should cover all of the steps eventually. Shortcuts in the procedure are allowable, and the easy steps can be performed first. Steps I, 2, and 3 deal with the mathematical definition of the problem ideutificatiou of variables and specification of the objective function and statement of the constraints. If the process to be optimized is very complex, it may be necessaiy to reformulate the problem so that it can be solved with reasonable effort. Later in this section, we discuss the development of mathematical models for the process and the objec tive function (the economic model). 

Determine the criterion for optimization and specify the objective function in terms of the above variables together with coefficients. This step provides the performance model (sometimes called the economic model when appropriate). 

A typical economic model involves the costs of raw materials, values... 

In a comparison of nine economic models, estimated costs to the United States as of the late 1990s ranged from a loss in gross domestic product from 40 billion to 180 billion, with assumptions of no emission trading from 20 billion to 90 billion with trading only among developed countries and from... 

Dahl, C. A., and Duggan, T. (1996). U. S. Energy Product Supply Elasticities A Survey and Application to the U.S. Oil Market, Resources and Energy Economics 18 243-263. Dahl, C. A., and Duggan, T. (1998). Survey of Price Elasticities from Economic Exploration Models of U.S. Oil and Gas Supply, Journal of Energy Finance and Developni enf3(2) 129-169. 

The simplest economic model for the guidance of the catalyst chemist is the standard cost sheet. This lists the variable costs (raw materials), fixed costs (capital charges) and semi-variable costs (conversion expense). Typically, these three elements may represent similar proportions of the overall cost per ton of product, but the circumstances following successful catalyst research can vary widely. 

Line K-1000, 105mm, HE/RAP 33) Ibid, Vol 27, Feasibility Study for an- Economic Model 34) Ibid, Vol 28, Integrated Master Plan and Priority System Feasibility Study ... 

The health economic evaluation model and the COl model are closely related. The consumption of agents of production causes direct costs. Indirect costs are a monetary expression for the loss of economic wealth, that is, the impact of a health intervention is the reduction of indirect costs. The increase of health is reflected by the reduction of intangible costs. 

Hellinger FJ (2006) Economic models of antiretroviral therapy searching for the optimal strategy, Pharmacoeconomics 24 631-642... 

TurkishModel. Continued and upgraded promotion of the Turkish political and economic model of a secular, multi-party, market democracy. Turkish and US-based NGO s, policy and educational institutes, and multilateral organizations like GUUAM and OSCE can play an important role in adapting the Turkish experience to the particular socio-economic and political conditions in selected countries. The focus of such effort ought to be Azerbaijan, Uzbekistan, and Turkmenistan. 

The critical load concept is intended to achieve the maximum economic benefit from the reduction of pollutant emissions since it takes into account the estimates of differing sensitivity of various ecosystems to acid deposition. Thus, this concept is considered to be an alternative to the more expensive BAT (Best Available Technologies) concept (Posch et al., 1996). Critical load calculations and mapping allow the creation of ecological-economic optimization models with a corresponding assessment of minimum financial investments for achieving maximum environmental protection. 

The objective function in an economic model in RTQ involves the costs of raw materials, values of products, and costs of production as functions of operating conditions, projected sales or interdepartmental transfer prices, and so on. 

Both the operating and economic models typically include constraints on... 

In supervisory control, process and economic models of the plant are used to optimize the plant operation by maximizing daily profit, yields, or production rates. The computer program reviews operating conditions periodically, computes the new conditions that optimize a chosen objective function, and adjusts plant controller set points, thus implementing the new improved conditions. This scheme will obviously require a model of the plant, current information about operating conditions from the plant s control system, and finally, sophisticated optimization software. 

In 1878 Karl Marx developed the reproduction schema his model of how total capital is produced and reproduced. This is thought to be the first two-sector economic model ever constructed. Two key aspects of Marx s writings are widely agreed to be undeveloped the role of aggregate demand and the role of money. This book has as its aim the synthesis of various strands of economic thought in an attempt to understand and clarify the structure of the reproduction schema. This synthesis will challenge prevailing orthodoxies. 

Hafkamp, W. A. (1984). Economic-Environmental Modelling in a National-Regional System. New York North-Holland. 

The major conclusions from all economic modelling activities could be drawn as follows introduction of hydrogen leads, under the assumption of a similar competitiveness as today for non-hydrogen technologies, to significant positive effects for long term GDP, employment and investment. 

Zhang, Z. and Folmer, H. (1998). Economic modelling approaches to cost estimates for the control of carbon dioxide emissions. Energy Economics, 20 (1), 101-120. 

Wood has been used by mankind for millennia because of its excellent material properties. Although the use of timber in some markets has decreased, the consumption of timber overall continues to rise. Projections have been made until the middle of the 21st century that in most cases show a rise in demand for timber (in all but low economic growth models) and an increase in production (Figure 1.7) (Brooks etal., 1996). There is, however, concern that the supply of timber for industrial purposes may not be able to match demand. For example, Bowyer etal. (2003), note that there will be a shortfall in the amount of forest area providing industrial timber by the year 2100, due to the rise in human population during this time (Table 1.4). 

TNC.70. 1. Prigogine, From dynamical systems to socio-economic models, in International Symposium on Evolutionary Dynamics and Nonlinar Economics, University of Texas at Austin, 1989. 

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